Should you invest in a holiday let?

There is money to be made in the rapidly expanding holiday let market. But do your sums carefully before you buy.

Holiday let cottage © iStockphotos

Furnished holiday lets can often avoid business rates
(Image credit: Holiday let cottage © iStockphotos)

Forget buy-to-let; try buy-to-holiday-let. More and more landlords are moving into buying property specifically for holiday lets, driven by the tax advantages and a less stringent regulatory environment compared with conventional buy-to-lets. Holiday lets are a small market, but they are expanding quickly. Leeds Building Society, for instance, registered a 19% increase in holiday-let mortgage applications in the first half of 2019 from the same period in 2017.

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